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RBI freeze on Pune-based Shivajirao Bhosale Coop bank accounts locks up Bhosale Elite condominiums’ society funds
Bhosale condominiums residents said that despite their fixed deposit having matured, the bank has not repaid the money
Residents of Bhosale Elite condominiums, Ganeshkhind road, have found their society fixed deposits at Shivajirao Bhosale Cooperative Bank frozen, after restrictions on the bank by the Reserve Bank of India (RBI) in December 2019.
RBI has extended directions on the Pune-based Shivajirao Bhosale Sahakari Bank for the next six months. “RBI hereby directs that the aforesaid directive shall continue to apply to the bank till May 04 subject to review vide directive dated October 18, 2019”, said a release from the RBI.
The Bhosale condominiums residents said that despite their fixed deposit having matured, the bank has not repaid the money.
The RBI censure came after city-based audit firm Torvi Pethe and Company was appointed by RBI to peruse the bank’s accounts, particularly its cash reserves. This report submitted on November 18, 2019, disclosed that cash to the tune of Rs 73,05,723 (Rs 73 crore) had been misappropriated.
The Bhosale Elite condominiums had closed their fixed deposit of Rs 1.29 lakh on maturity being funds required to repair the lift. They also had another FD of Rs 1.35 lakh which has so far seen no release. This was on April 18 2019.
On the instructions of the commissioner of Cooperation and registrar of Cooperative Societies, the Reserve Bank of India (RBI)-appointed auditors have filed a complaint against all the bank directors and some employees on November 27, 2019. The bank, with 12 branches and Rs 430 crore deposits, across Pune district and 1.10 lakh account holders, was promoted by the ex-member of the legislative council (MLC) from Nationalist Congress Party (NCP), Shivaji Bhosale.
Despite repeated calls and text messages, Shivaji Bhosale did not respond. The bank has loan allocation worth Rs 310 crore with accounts worth Rs 294 crore defined as non-performing accounts
The Bhosale Elite condominiums society account is with the Shivajinagar branch of the bank.
“We have around Rs 5.7 lakh in our society account and for past nine months, we are writing and demanding our money from our account from the bank,” said treasurer Pravin Walkvekar, and resident of the Bhosale Elite condominiums.
“We have written at least two to three letters every month for them to release our fixed deposits which have matured. We are still waiting for we have to fix our building lift at the earliest.”
According to Walvekar, “The entire reserve fund of our apartment was kept as fixed deposit in the bank. We have no reserve funds to take care of major break down in the lift with cost repair of Rs 5 lakh. The delay in the release of our fixed deposit amount has led to our inability to get the lift repaired. With closure of the life, the health and lives of our senior citizen members is seriously affected and in some cases, members health is affected with serious risk to their life with no operational lift as it is our inability to get the lift repaired and keep it operational due to no transfer of funds by the bank.”
In a letter to the bank, the treasurer of the apartments has said that they hold Shivjirao Bhosale Sahakari Bank Ltd entirely responsible for the effect on life and health of their senior citizens under circumstances.
According to another resident Arun Joshi, “Rs 73 crore complaint was filed in Shivajinagar and Deccan police station but there is no FIR yet filed. The bank also said that Rs 80 crore was shown as credited by deposit of cheque last March 2019 to dress up balance sheet but no response to our pleas.”
